Plans for the Bellwether District in Philadelphia call for some 10.5 million square feet of high-end industrial space across 700 acres, as well as a so-called Innovation Campus spanning 250 acres. — Rendering courtesy: JLL
By Joshua Burd
The firm behind what will be a massive logistics and innovation campus in Philadelphia has tapped JLL as its leasing agent for the site, including a first phase that will create more than 1 million square feet of high-end warehouse and distribution space.
JLL’s Northeast industrial team, which is based in East Rutherford, is working on behalf of Hilco Redevelopment Partners at the planned 1,300-acre, 14 million-square-foot property some at 3144 West Passyunk Ave. Brokers on Monday announced that vertical construction is underway at what’s known as the Bellwether District, noting that the initial offering will include buildings of 325,659 and 727,272 square feet that are slated to open in early 2025.
The JLL team that is marketing the industrial buildings includes Robert Kossar, Nate Demetsky, Larry Maister and Kyle Lockard, while the firm’s David Knee, Jeff Lockard and Ignatius Armenia are providing regional support, according to a news release. Ron Cariola, Tyler Vandergrift and Joe Colletti, also of JLL, are leading the leasing effort for what’s been dubbed the Innovation Campus portion of the site.
“JLL is honored to be selected to lease a once-in-a-generation project that will create a high-powered economic engine to drive the region’s economy for the next century,” said Kossar, a vice chairman and market leader of JLL’s Northeast industrial region.
In a news release, the team noted that the site is less than three miles from Center City Philadelphia and its nearly 1.6 million consumers. The distribution space built in phase one will include modern features that Hilco hopes will attract companies across industries, including food, e-commerce and logistics, all of which would be a four-hour drive from 47 million consumers.
JLL added that the Bellwether District offers business incentives via a Keystone Opportunity Zone designation, real estate tax abatements under a payment in lieu of taxes program and the property’s federal Foreign Trade Zone status.
“The Bellwether District will provide extraordinary flexibility for logistics, distribution and warehouse occupants, who will benefit from an abundance of state-of-the-art industrial space conveniently located near air, truck, rail and marine transportation modes,” said Demetsky, a vice chairman with JLL. “The sheer scope of this urban infill project and the size of the future complex within Philadelphia’s city limits will enable its industrial users to meet the shifting future needs of companies across industries with unmatched labor availability. The project will fill a void in the Philadelphia market that has existed for decades, and the market response to date has been extremely positive, especially considering the attractive economic zone and tax benefits.”
At full build-out, industrial space would comprise some 10.5 million square feet across 700 acres, according to a brochure for the project. The Innovation Campus, meantime, is projected to occupy 250 of the 1,300 acres.
“This portion of the park will be designed and built to create an environment where life sciences, technology, health care and higher education organizations can thrive and grow,” said Cariola, an executive managing director with JLL. “We are thrilled to join the HRP team and our industrial partners!”
HRP acquired the site out of bankruptcy in June 2020, noting that it has already created hundreds of jobs to handle millions of dollars of decommissioning work as part of a complex, multiyear redevelopment effort, the news release said. The project is expected to generate 19,000 permanent jobs and $41 million in annual tax revenue.
“We’re excited to commence the phase one construction at The Bellwether District and look forward to working with the JLL teams to attract world class tenants to the project,” said Andrew Chused, HRP’s chief investment officer. “Future tenants at The Bellwether District will have an instrumental role in driving a lasting economic impact to Philadelphia and the region.”
